Minnesota: Legislature Sends Governor No-Fault Fraud Bill

NAMIC's state trade association advocacy partner, the Insurance Federation of Minnesota, reports that the Legislature, without a single dissenting vote, passed SF 2342, which takes initial steps to fight No-Fault fraud. The bill prohibits deceptive advertising by providers and strengthens the law as applied to “runners, cappers and steerers.”

Industry observers acknowledge that this bill, which was negotiated with the state’s chiropractic association, is a first step in addressing escalating PIP costs. While it will never be easy, the groups have agreed to continue to address issues that threaten the viability of the state’s No-Fault law. Work will continue after session ends with a goal of further reforms in 2013.